At present it is extremely difficult to challenge exit fees because they are not legally classified as a “service charge” or an “administration charge”. Therefore you cannot make an application to the Tribunal to determine cases relating to exit fees.
However, the Office of Fair Trading (OFT) undertook an investigation on whether exit fees are an unfair contract term under the Unfair Consumer Contract Terms Regulations 1999 (UCCTR 1999). It is worth noting that UCCTR 1999 does not apply to leases entered into BEFORE July 1995.
More information you might find useful:
- Office of Fair Trading – Retirement Homes Investigation into exit fees (external website)
- Leasehold Retirement Housing
- More Frequently Asked Questions on Retirement Housing
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